Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Price Down 2.1% – Time to Sell?

Shares of Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) dropped 2.1% on Friday . The company traded as low as $417.32 and last traded at $418.54. 8,852,495 shares changed hands during mid-day trading, a decline of 35% from the average session volume of 13,658,654 shares. The stock had previously closed at $427.30.

More Taiwan Semiconductor Manufacturing News

Here are the key news stories impacting Taiwan Semiconductor Manufacturing this week:

• Positive Sentiment: TSMC is advancing its A14 process technology for AI chips, targeting improved performance and power efficiency. The A13 and A12 nodes also extend the company’s next-generation process roadmap, reinforcing its competitive position in leading-edge semiconductor manufacturing. How TSMC is Advancing its A14 Technology Roadmap for AI Transformation
• Positive Sentiment: TSMC is reportedly set to manufacture Xiaomi’s Xring O3 processor using its 3-nanometer technology. The order expands TSMC’s advanced-chip customer base beyond major traditional chip designers and supports demand from AI-enabled consumer devices and autonomous-driving applications. Why Is Taiwan Semiconductor Manufacturing Winning More 3nm AI Chip Work?
• Positive Sentiment: A $4.7 billion joint venture with Sony to develop and manufacture next-generation smartphone image sensors highlights TSMC’s expansion into sensors for AI-enabled devices. Mass production is expected to begin in 2029, offering a longer-term growth opportunity. Sony Group and Taiwan Semiconductor Are Betting $4.7 Billion on the Eyes of AI Machines
• Positive Sentiment: Billionaire investor Stanley Druckenmiller and another hedge fund reportedly bought TSMC shares, signaling continued institutional confidence in the foundry’s role as a leading way to invest in the AI semiconductor trend. Stanley Druckenmiller Just Bought Taiwan Semiconductor Stock
• Neutral Sentiment: TSMC’s reported 44.7% revenue growth in July underscores powerful demand, but the strength also raises the performance and guidance bar for the broader AI-chip supply chain. TSMC’s July Surge Raises the Bar for Nvidia’s Foundry
• Negative Sentiment: After a substantial run-up and with shares trading at a premium valuation, investors may be taking profits or demanding results that exceed already-strong AI growth expectations. The supplied articles do not identify a new fundamental setback at TSMC.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on TSM. Citigroup reiterated a “buy” rating on shares of Taiwan Semiconductor Manufacturing in a report on Monday, July 6th. Wall Street Zen cut shares of Taiwan Semiconductor Manufacturing from a “strong-buy” rating to a “buy” rating in a research report on Saturday, August 8th. Barclays increased their price target on shares of Taiwan Semiconductor Manufacturing from $625.00 to $650.00 and gave the stock an “overweight” rating in a research note on Friday, July 17th. Bank of America lifted their price objective on Taiwan Semiconductor Manufacturing from $490.00 to $590.00 and gave the company a “buy” rating in a research report on Wednesday, June 24th. Finally, Susquehanna increased their target price on Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the stock a “positive” rating in a research report on Thursday, July 16th. Three equities research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat.com, Taiwan Semiconductor Manufacturing currently has an average rating of “Buy” and a consensus target price of $524.25.

Taiwan Semiconductor Manufacturing Stock Performance

The company has a market capitalization of $2.17 trillion, a P/E ratio of 30.20, a price-to-earnings-growth ratio of 0.96 and a beta of 1.38. The company’s 50 day moving average is $423.00 and its 200-day moving average is $396.10. The company has a current ratio of 2.46, a quick ratio of 2.25 and a debt-to-equity ratio of 0.14.

Taiwan Semiconductor Manufacturing (NYSE:TSM) last posted its quarterly earnings data on Tuesday, June 30th. The semiconductor company reported $4.28 EPS for the quarter. The business had revenue of $39.89 billion for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 50.31% and a return on equity of 39.25%. Equities analysts anticipate that Taiwan Semiconductor Manufacturing Company Ltd. will post 16.45 EPS for the current fiscal year.

Taiwan Semiconductor Manufacturing Cuts Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, January 7th. Stockholders of record on Thursday, December 10th will be paid a $1.0854 dividend. This represents a $4.34 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date of this dividend is Thursday, December 10th. Taiwan Semiconductor Manufacturing’s dividend payout ratio is currently 25.32%.

Insider Transactions at Taiwan Semiconductor Manufacturing

In other news, VP Lipen Yuan purchased 1,000 shares of the company’s stock in a transaction that occurred on Tuesday, August 18th. The shares were bought at an average price of $74.50 per share, for a total transaction of $74,500.00. Following the purchase, the vice president directly owned 6,000 shares in the company, valued at approximately $447,000. This trade represents a 20.00% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Shyue-Shyh Lin acquired 2,000 shares of the business’s stock in a transaction that occurred on Sunday, July 19th. The shares were purchased at an average cost of $71.71 per share, for a total transaction of $143,420.00. Following the completion of the transaction, the vice president directly owned 28,269 shares in the company, valued at $2,027,169.99. The trade was a 7.61% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders purchased a total of 17,662 shares of company stock valued at $1,307,491 in the last quarter. 1.11% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. Cedar Mountain Advisors LLC raised its stake in Taiwan Semiconductor Manufacturing by 88.2% during the 2nd quarter. Cedar Mountain Advisors LLC now owns 64 shares of the semiconductor company’s stock valued at $31,000 after buying an additional 30 shares during the last quarter. Markowski Investments bought a new position in shares of Taiwan Semiconductor Manufacturing in the second quarter worth about $33,000. Quattro Advisors LLC bought a new stake in Taiwan Semiconductor Manufacturing during the 4th quarter worth approximately $25,000. Hilton Head Capital Partners LLC bought a new stake in shares of Taiwan Semiconductor Manufacturing during the 4th quarter valued at $27,000. Finally, Evolution Wealth Management Inc. lifted its position in shares of Taiwan Semiconductor Manufacturing by 257.7% in the first quarter. Evolution Wealth Management Inc. now owns 93 shares of the semiconductor company’s stock valued at $31,000 after acquiring an additional 67 shares in the last quarter. 16.51% of the stock is owned by hedge funds and other institutional investors.

About Taiwan Semiconductor Manufacturing

Taiwan Semiconductor Manufacturing Company (TSMC) is a leading pure-play semiconductor foundry that provides wafer fabrication and related services to the global semiconductor industry. Founded in 1987 by Morris Chang and headquartered in Hsinchu, Taiwan, TSMC manufactures integrated circuits on behalf of fabless and integrated device manufacturers, offering contract chip production across a broad set of technologies and products.

TSMC’s service offering covers logic and mixed-signal process technologies, specialty processes for radio-frequency, power management and embedded memory, and advanced nodes used in mobile, high-performance computing and AI applications.